GBPUSD and EURUSD trade close to yearly lows; Fears on Chinese growth as Omicron spreads as investors shift to safe-haven currencies. Macron defeated Le Pen in French Election.
April 25, 2022
GBP/USD 1.2749 GBP/EUR 1.1874 EUR/USD 1.0738 USD/CAD 1.2728 EUR/CHF 1.0282 EUR/SEK 10.3349 EUR/NOK 9.6817 EUR/DKK 7.4400 USD/ILS 3.2731 AUD/USD 0.7192 NZD/USD 0.6625 USD/SGD 1.3743 USD/JPY 128.21 USD/CNH 6.5823 USD/INR 76.6313 EUR/ILS 3.5145 GBP/ILS 4.1729 USD/ZAR 15.6552
GBPUSD trades lower by -0.7% following covid uncertainty.
UK police continue their investigation into ‘party gate’ as the PM continues to tread the line. His support amongst backbench tory MPs has begun to waver.
Asking prices for UK homes have hit a record high, driven by a shortage of property on the market.EUR
EURUSD has fell -0.81% in its worst day this month. This comes despite positive results from the French presidential election with Macron beating Le Pen in the second round. The euro is at its weakest against the dollar in a year.
ECB President, Lagarde, has described European inflation challenges as a ‘different beast’ to that seen in the US. This comes as monetary policy divergence continues to weaken the euro against the dollar.USD
The dollar is climbing following covid reports from China, the risk-off sentiment is leading investors towards the safe-haven dollar. The DXY trades up 0.43% as we print.
Bloomberg’s recession-probability model suggests the chance of a recession within the next 12 months is close to zero.ASIA/PACIFIC
China has continued with its zero covid policy sending shockwaves through global markets. Omicron cases have been surging, with record fatalities reported in Shanghai. With covid darkening the growth outlook for the world’s second largest economy, the market has taken a risk-off position, with equities falling worldwide and significant moves in currency markets.
The news from China has impacted commodities, with Iron down -7%. The CSI fell almost -5% during the Asian session.ILS
USDILS trades down -0.09%, the pair still trades near its monthly high, up 1.5% from last month.Data & Events
UK CBI April Business Optimism.
Euro-area Feb. Construction Output
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